Terms of Service
Service Agreement for Collection Services
Service Agreement for Collection Services
This AGREEMENT is made between Alpha Receivables, LLC REFERRED to as “ALPHA” and (your company name here) HEREIN referred to as CLIENT.
1) ALPHA will always use its best efforts to collect all claims CLIENT places.
It is understood and agreed that ALPHA does not guarantee any specific result on accounts placed by CLIENT. In no event is ALPHA held liable in any facet for the inability to collect any claim placed by CLIENT for collection. Upon request CLIENT agrees to forward valid documentation to ALPHA to confirm the amount, legitimacy, and authenticity of the claim. CLIENT assures that all claims placed with ALPHA for collection are valid in amount and authenticity.
2) The following contingency fee rate for a claim accepted by ALPHA for collection is based upon the age and size of claim:
- Under 1 Year in Age at time of placement: 30%
- Over 1 Year in Age at time of placement: 40%
- Under one-thousand dollars at time of placement regardless of age: 40%
3) ALPHA is entitled to their full commission due on any payment(s) received regardless of payer or whether paid to ALPHA or CLIENT once the claim is submitted.
4) In the event ALPHA deems a valid claim as non-collectible by any means of remedy and no payments were received by either ALPHA or CLIENT after placement, ALPHA returns said claim back to CLIENT at no charge per CLIENT request.
CLIENT may withdraw a claim placed with ALPHA only where a) there has been no activity on the claim in the preceding 90 days and b) the claim has not been forwarded to an affiliated attorney. Any commission then due to ALPHA must be paid before withdrawal of claim is complete. CLIENT must notify ALPHA in writing at least 10 business days prior to withdrawal. A cancellation fee of 10% of the principal balance applies to any claim discovered by ALPHA to have been previously paid prior to placement or placed by CLIENT in error.
5) It is understood that any communication with or from Debtor is to be directed to ALPHA. Once a claim is placed with ALPHA for collection, CLIENT shall not instruct Debtor to make payments directly to CLIENT.
6) CLIENT agrees to report all direct payments made on a claim within three (3) business days of receipt of payment, and the commission due on the direct payment is to be remitted to ALPHA within (21) days.
Any claim canceled by CLIENT while payments are being made, expected, or forthcoming will be billed by ALPHA for the full commission due on the entire balance of the original claim assigned to ALPHA.
Any merchandise returned to CLIENT by Debtor entitles ALPHA to a commission equal to 20% of the actual invoiced amount of said merchandise.
7) If ALPHA is unable to obtain payment due, suit may be recommended and the contingency fee will be higher than the rates described herein to compensate the attorney. If Client authorizes suit, Client is responsible for all court costs (cost of filing, service, etc) and will also be responsible for legal fees in the event of a counterclaim filed by defendant. No suit is filed without written authorization from Client and prepayment by Client of court costs and non-contingent suit fee (if required) per the litigation quote.
CLIENT grants to ALPHA and to any affiliated attorney or collection firm that may be forwarded CLIENT claim(s) the express authority to endorse and negotiate any check, draft or other negotiable instrument made payable to CLIENT for deposit in trust for distribution to CLIENT after deducting the commission and fees due ALPHA under this service agreement.
8) ALPHA will account for on a monthly basis all funds collected by ALPHA on CLIENT’S behalf and all remittances and/or invoices will be sent to CLIENT at this time.
9) ALPHA agrees and will hold harmless CLIENT from any claim, demand, action, or judgment, including all reasonable legal fees arising out of any action done by ALPHA in connection with the collection of any claim(s) placed by CLIENT, which is not a result of a violation by CLIENT of any portion of provision 1.
10) This agreement is interpreted in accordance with the laws of the State of Florida. In the event that any provision hereof is found to be invalid or unenforceable, then that provision is deemed to be severed and the remaining provisions will remain true and in full effect.